Constraints on the design and implementation of monetary policy in oil economies : the case of Venezuela /
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| Author / Creator: | Costa, Mercedes da. |
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| Corporate author / creator: | International Monetary Fund, Corporate Author. |
| Imprint: | Washington : International Monetary Fund, June 2008. [Washington, District of Columbia] : International Monetary Fund, 2008. ©2008 |
| Description: | 1 online resource (49 pages). |
| Language: | English |
| Series: | IMF Working Papers IMF Working Papers. |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12508655 |
| Summary: | By definition, fiscal dominance impedes the effective implementation of any monetary strategy aimed at controlling inflation. Economies that exhibit oil dominance-a situation in which oil exports largely affect the main macroeconomic indicators-may also exhibit fiscal dominance. However, in this case, the standard indicators used to gauge the presence of fiscal dominance may fail to give the appropriate signals. The main purpose of this paper is twofold: i) to present a simple framework to analyze fiscal dominance in oil exporting countries and ii) to test the hypothesis of the presence of oil dominance/fiscal dominance (OD/FD) in the case of Venezuela. Using VAR and VEC models it is possible to conclude that there is relevant evidence supporting the validity of the OD/FD hypothesis. |
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| Physical Description: | 1 online resource (49 pages). |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 1462382037 9781462382033 1452711755 9781452711751 9786612840937 6612840935 1282840932 9781282840935 1451870000 9781451870008 |